In a recent exchange, Federal Reserve Governor Michelle Bowman, He said that the job market will take time to recover from the effects of the COVID-19 pandemic and that more must be done to bring the US economy back fully back on track.
“Despite the encouraging pace of recent hires, employment is still well below where it was … I am hopeful that we will continue to build on this recent positive momentum as there is more work to be done to get the economy back on track. on a solid footing, “Bowman said in remarks prepared for a conference on fostering an inclusive economic recovery.
Featured statements
Some people may need time to re-enter the workforce.
Employment remains well below where it was despite recent gains.
Many households still face tough times.
More remains to be done to bring the US economy back to a solid footing.
Earlier Tuesday, San Francisco Fed Chair Mary Daly echoed those sentiments, noting that there are nearly 10 million people unemployed and more currently on the sidelines of the job market.
Those views diverge with some other central bank officials as the interest rate setting committee ponders when to begin withdrawing some of the extraordinary monetary support designed to help the US economy recover from the health crisis.
Analysts at Brown Brothers Harriman argued that “despite Powell’s dovish press conference, the downsizing seems likely to come sooner rather than later,” and pointed to comments from more aggressive Fed members.
James “Jim” Bullard, president and CEO of the Real Reserve Bank of St. Louis, and Bullard’s former colleague, current Governor Waller, joined him saying he could see a reduction announcement in September and start in October.
Waller said the delta variant should not “sideline” the economy, but that this schedule is dependent on two more strong employment reports. He stressed that “we should go early and fast, to make sure we are in a position to increase rates in 2022, if necessary.” We believe this is the first time in this cycle that any Fed official has called for a raise and it is clear that Bullard and Waller (along with Kaplan and Evans) are forming an aggressive core at the FOMC, “wrote analysts at BBH.
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